How To Generate $100 Per Month In Passive Income From Verizon Communications Stock

For income-focused investors, dividend-paying stocks can be an attractive way to generate regular cash flow from their investment portfolio. Verizon Communications VZ, one of the largest telecommunications companies in the United States, has long been a favorite among dividend investors due to its consistent and generous payouts. But how many shares of Verizon would you need to own to earn an average of $100 per month in dividends?

Let’s break down the numbers:

Verizon’s current dividend

Verizon Communications has a forward annual dividend rate of $2.66 per share, which translates to a impressive 6.64% yield at current price levels. This dividend is paid out quarterly, meaning shareholders receive $0.665 per share every three months.

Calculating the required shares

To earn an average of $100 per month in dividends, you would need to receive $1,200 per year or $300 per quarter in dividend payments.

$1,200 per year / $2.66 per share = 451.13 shares

Rounding up to the nearest whole share, you would need to own 452 shares of Verizon stock.

Actual dividend payout

Owning 452 shares of Verizon would result in an annual dividend payout of $1,202.32 (452 x $2.66), or an average of $100.19 per month.

Investment required

As of this writing, Verizon is trading at approximately $40.25 per share. Therefore, to purchase 452 shares, you would need to invest:

452 shares x $40.25 per share = $18,193

In summary, to earn an average of $100 per month in dividends from Verizon stock, you would need to invest approximately $18,193 to purchase 452 shares at current prices.

It’s important to note that while Verizon has a history of consistent dividend payments, all investments carry risk. The stock price can fluctuate, and there’s always the possibility, however unlikely, that the company could reduce or eliminate its dividend in the future. Additionally, dividends are not guaranteed and require declaration by the company’s board of directors each quarter.

Before making any investment decision, it’s crucial to consider your overall financial goals, risk tolerance, and to diversify your portfolio. While Verizon’s high yield may be attractive, it’s generally not advisable to concentrate a large portion of your investment in a single stock.

For those interested in dividend investing but lacking the capital to invest $18,193 in a single stock, there are other options to consider. These might include dividend-focused ETFs, mutual funds or alternative investments, which can provide diversification and income with a smaller initial investment.

Regardless of your approach, always remember to do your own due diligence and consider consulting with a financial advisor to ensure your investment strategy aligns with your personal financial situation and goals.

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